COLUMBIA, S.C. - A federal agency has closed a Charleston credit union, saying the small institution was insolvent and has no prospects for financial recovery.
The National Credit Union Administration, based in Alexandria, Va., said it liquidated the Port Trust Federal Credit Union on Tuesday. The credit union has about 260 members and about $460,915 in assets, the agency said.
“NCUA made the decision to liquidate Port Trust Federal Credit Union and discontinue its independent operations after determining that the credit union is insolvent,” the agency said in a statement. “It has no prospects for restoring viable operations.”
Cherrie Umbel, a NCUA spokeswoman, said credit union members’ deposits are insured up to at least $100,000 on regular accounts and $250,000 on certain retirement accounts.
Umbel said the agency has a list of account holders, and those people will be contacted and their checks issued within five to seven business days.
Nobody answered the phone at the credit union on Wednesday.
The agency statement said it had chartered Port Trust in 2006 to “serve persons who live, work, worship, attend school in, and businesses and other legal entities” within the Charleston and North Charleston area.
The NCUA is the independent federal agency that charters and supervises federal credit unions. It also operates the National Credit Union Share Insurance Fund and insures the savings of nearly 87 million members of all federal credit unions and most state-chartered credit unions. The agency’s operations are paid for by the credit unions, not tax dollars, the statement said.